"sfeco transaction is not fair but reasonable", page-3

Vainglorious, yams1er have come across it before on another share it means hold onto your wallet!

Joking apart
http://www.asx.com.au/asxpdf/20120521/pdf/426cvk3pph36kn.pdf
page 25,32,38, 51, 70 and so on and so on.

fair value is generally defined as: the price at which an asset could be exchanged between a knowledgeable and willing but not anxious seller and a knowledgeable and willing but not anxious buyer both acting at arms length.

Or the equations on page 73 (joke).

AXM is a very anxious seller and with the Eritreans calling the shots as AXM's landlord things are about arms length as a rent negotiation.

Perfectly reasonable that AXM do this deal, as they have no choice, but nothing fair about it.

What would happen if shareholders turned the deal down?

AXM would have to do the rounds again cap in hand with very little chance of doing a better deal outside a Chinese company with the possibility of Eritreans torpedoing any deal anyway.

Western Eritrean diplomatic relations have hit a new low recently as well.

http://asmarino.com/news/1404-eritrea-diplomatic-services-suspended-washington-and-asmara-more-distant
http://www.tesfanews.net/archives/7931
http://www.tesfanews.net/archives/7714
http://www.tesfanews.net/archives/7600
http://www.tesfanews.net/archives/7368
http://www.tesfanews.net/archives/7210

If shareholders turned this down and AXM were forced to come back to the table later they would likely be punished with a even worse deal. Better to take the money let things blow over in Eritrea till the value of AXM other areas can be recognised and diversify with the rest of the money.

Not fair, but only reasonable option is do the deal.